Cygnal reports loss of $2 million

Cygnal Technologies Corp., which is undergoing a court-supervised restructuring, announced Thursday it lost $2 million during the quarter ending Sept. 30, on top of a loss of $1.1 million during the previous quarter. Revenues during the quarter ending Sept. 30 were $26.4 million, down from $31.6 million during the same period in 2006.

Last month, the Markham, Ont.-based networking integrator was granted protection by creditors from the Ontario Supreme Court of Justice under the Companies Creditors’ Arrangement Act.

It requested court protection, and $7.4 million in financing from lender Laurus Master Fund Ltd., because it faced a “senior liquidity issue” due in part to loans borrowed at a high interest rate. Cygnal already owes Laurus $2 million.

Under a court order, Prince Waterhouse Coopers Inc. has been appointed as a monitor and Cygnal is required to submit a restructuring plan for its creditors’ approval.

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